Why a rand move hits you three times
SARS converts your foreign-currency invoice to rand to set the customs value. Duty is a percentage of that rand value. Then VAT at 15% is charged on the Added Tax Value (ATV) = customs value + 10% + duty. So when the rand weakens, the same dollar invoice produces a bigger rand customs value, a bigger duty, and a bigger VAT bill. The currency move is amplified, not just passed through.
Worked example: a R1.00 move on $20,000
| Line (10% duty) | At R18.00 | At R19.00 |
|---|---|---|
| Customs value ($20,000) | R360,000 | R380,000 |
| Duty @ 10% | R36,000 | R38,000 |
| ATV (+10% +duty) | R432,000 | R456,000 |
| Import VAT @ 15% | R64,800 | R68,400 |
| Duty + VAT payable | R100,800 | R106,400 |
A one-rand move added R20,000 to the customs value and R5,600 to the duty-plus-VAT bill — roughly R25,600 more cash out, on one container. VAT is claimable if you are VAT-registered, but you still have to fund it up front.
How to protect your margin
- Forward Exchange Contract (FEC): fix the ZAR/USD rate now for payment later, so your cost is locked.
- Pay earlier where cash allows, to shorten your exposure window.
- Price in a buffer: build a few percent of currency headroom into your selling price.
- Hold a foreign-currency (CFC) account if you trade regularly, to time conversions.
Watch the rate before you commit
Check the live ZAR cross-rates before you confirm an order or fix an FEC.
See live FX rates →Frequently asked questions
Which exchange rate does SARS use for customs value?
SARS publishes the rates of exchange used to convert foreign-currency invoices to rand for customs purposes. The rate applied is set around the time of declaration, so a rand move before you clear changes your bill.
Does a weaker rand increase my import VAT?
Yes. VAT is 15% of the ATV, which is built from the rand customs value, so a weaker rand raises the VAT amount even though the rate stays at 15%.
Is an FEC worth it for a small importer?
If a currency swing could wipe out your margin, locking the rate removes that risk for a modest cost. For tiny one-off orders, pricing in a buffer may be simpler.
Related guides
Sources: SARS (rates of exchange); SARB. Last updated June 2026. Figures are illustrative — use live rates and confirm with your bank.